BLOCKCHAIN GAMING

BLOCKCHAIN GAMING

TOPIC: Science & Tech

Section: Computer Related

Context- Many Indian gaming companies have expressed their interest in introducing elements of Blockchain technology into their games in the near future.

Concept-

What are blockchain games?

• Blockchain is a decentralised database that stores information. It relies on technology that allows for the storage of identical copies of this information on multiple computers in a network.
• Blockchain games are online video games that are developed by integrating blockchain technology into them.
• It can be diversified into the following components-
  • Non-fungible tokens: NFTs represent in-game virtual assets that can be owned by players, such as maps, armour or land.
  • Cryptocurrency: such as tokens based on the Ethereum blockchain, may be used for the purchase of in-game assets. These in-game purchases usually enable gamers to buy items like extra lives, coins and so on directly from the game.
  • Gaming coins: such as Axie Infinity (ACS) and Enjin Coin (ENJ), are in-game cryptocurrency which may be acquired and then used for the purchase of in-game assets.

Regulatory aspects in India:

• Most of the gaming laws were brought into effect prior to the internet era and, therefore, only contemplate regulation of gaming activities taking place in physical premises.
• Since blockchain is merely the underlying technology, there is no express regulation in India.
• Most Indian states regulate gaming on the basis of a distinction in law between ‘games of skill’ and ‘games of chance’.
• Staking money or property on the outcome of a ‘game of chance’ is prohibited and subjects the guilty parties to criminal sanctions.
• However, placing any stakes on the outcome of a ‘game of skill’ is not illegal per se and may be permissible.

Patents & Trademark:

• For a blockchain game or any of its elements to be patented in India if it meets the requirements of novelty, involving an inventive step, and industrial application.
• In terms of Section 3(k) of the Patent Act, 1970, computer programs are per se not inventions and hence, cannot be patented.
• A trademark is used as an identifying mark to determine the source of a particular good or service, and is obtained to protect the goodwill and reputation of the brand.
• Any distinguishing mark in a blockchain game or NFT that would allow consumers to identify the source of that particular game or NFT may be trademarked.
• Although there is no specific provision in the Copyright Act that deals with video games, copyright protection of video games may be sought under the category of ‘multimedia products’.
• Similar to the position with trademarks, the process of obtaining a copyright for a blockchain game would be the same as any other online video game.